Applying for a payment holiday
We are experiencing a higher than average number of calls at the moment and as some of our staff are furloughed, so it may take a while to get through. In most cases, the easiest way to request a payment holiday is online.
What is a payment holiday?
A payment holiday allows you to take a short break from your payments to help manage your outgoings in times of difficulty, such as the loss of a job or reduction in income for you or your household.
The months that you do not pay are added to the end of your agreement. If the amount is more than your monthly payment, it will be split over a number of months. This means that you will not pay more than your normal monthly payment each month.
Things to note
The payments missed before you started your payment holiday will still be due. If you have not spoken to us about the missed payments, call us so we can discuss any further support that you may need.
If you are concerned the loss of income may be longer term, a payment holiday may not be right for you.
Please call us on 0344 824 8828 so that we can discuss other options to help you.
If you have missed up to 2 payments, you can still ask for a 3 month payment holiday online.
Frequently Asked Questions
Are there fees and charges for taking a payment holiday?
No. There are no fees or charges to take a payment holiday. You will pay more overall as you take longer to pay back the amount borrowed. We will work out how much extra you need to pay and we will add this to your agreement.
Does taking a payment holiday affect my credit rating?
No. There will be no negative impact on your credit file by taking a payment holiday.
Do I need to do anything with my bank?
No. You do not need to ask your bank to make any changes to your direct debit. We will take care of this for you.
How will I know the payment holiday is in place?
We will defer your payments one month at a time. Each month you will receive a letter confirming your next payment date has been moved by one month.
Why do I pay more for a payment holiday?
There are no charges for a payment holiday, but you end up paying more overall as you will take longer to pay back the amount borrowed.
You may also have to pay other costs if you keep your vehicle for longer: for instance insurance and road tax. If you have warranty or breakdown, check that it covers you for the extended time that you will have the vehicle. You may also need to pay for an additional MOT or service on the vehicle.
What happens when the payment holiday ends?
You will restart your monthly payments. After you pay the last payment, you will pay the extra amount. If it is more than your monthly payment, it will be split over a number of months. This means that you will not pay more than your normal monthly payment each month.